As future managers, we need to
analyze frameworks to help us understand the competitive environment where
these companies are emerged. This analysis will be based on a very well known
marketing framework – SWOT – which will identify both internal and external
variables (strengths and weaknesses of the companies and opportunities and
threats of the market).
In the case
of Brown’s Coffee-Shop, we find the store layout to be one of its major
weaknesses because when the customer enters the store it is unclear where he
should go to make the order as the counter is too far away from the entrance.
This is due to the store being the lobby of their hotel and therefore, the
reception is the focus of attention. However, they could take advantage of the
clients of the hotel.
Adding to
the hotel, there is also a Burger house - Brown’s Burgers – that is right in
front of the coffee-shop and that uses the same logo which can create confusion
among customers. Regarding the strategies of Brown’s, we consider that they are
not aligned because they are aiming to target different segments of customers.
As far as
the strengths of this shop, the products are very tasty and with good quality,
the environment is relaxed and comfortable and it is less crowded when compared
with the other coffee-shops which allows the search for quietness among older
customers.
Concerning
Jeronymo, it is a small store usually targeted by tourists, being the only one
with no free Wi-fi. They belong to one of the biggest Portuguese groups,
Jerónimo Martins, but do not take advantage of the group’s brand equity having
low visibility.
When
compared to its competitors, Jeronymo appears as a medium price coffee-shop as
it presents lower prices. Jeronymo is surrounded by typical Portuguese cafes
and, as a result people tend to go there to drink normal coffee or beer instead
of the usual coffee-shop macchiato or frappuccino. Therefore, there is a tendency
to detach from the original concept.
In contrast
to others, Jeronymo is more adapted to the Portuguese culture and habits which
may be their biggest opportunity. Introducing themselves as THE Portuguese
coffee-shop. Plus, it presents a Complement’s book which we found to be rather
original and creative.
Starbucks
Coffee-Shop is one of the most recognized brands all over the world and the
first name that comes to our mind (top of mind brand) when we think about
coffee-shops and in Rossio, they kept its layout and tradition. Due to this
standardization, we don’t benefit from a distinct experience because if we go
to another country we will have similar products and stores – lacking
adaptation to the local culture.
Furthermore,
Starbucks is very concerned about the environment and society’s care about
having a healthy life style. Therefore, they offer several beverages and foods
with no lactose, with soy milk or non-fat ingredients. Regarding the
environment, they are very proud about their fair trade coffee which increases
the final prices with an added value for the consumer but, we are aware that
the money is for a good cause.
